Property Nature, Background Characteristics Of Executives And Corporate Performance

Zhejiang Province as an important part of the country has contributed a great dealof strength for the country’s economic construction. The listed companies on behalf oflocal business groups play an important role in addressing employment and increasingtax revenue. Senior managers are important human resources in a company, and theyhave a pivotal role in the company’s development of strategic decision-making. Itneeds to be explored for the effect of the various background characteristics ofexecutives of listed companies on the company performance level, and to study it maybe the reality of senior executives selection and appointment for reference value.Therefore, the paper focuses on the relationship between the background features ofexecutives of Zhejiang listed companies and enterprise performance.In this paper, the research is based on the upper echelons theory, social capitaltheory and agency theory, combined with a large number of relevant documents,defining the nature of property rights, the concept of executive backgroundcharacteristics and enterprise performance. The listed companies in Zhejiang provinceare divided into different parts according to the nature of property rights, which arecalled state-owned enterprises and private enterprises. The executive backgroundcharacteristics are defined as the proportion of female executives, the age ofexecutives, the education of executives, the proportion of executive share holdings,and the separation case of the job between stake president and general manager. Thebackground features of state-owned and private enterprises executives are analyzed.and financial condition for nearly three years are analyzed too. In order to better reflectthe level of performance objectively and reasonably, we build a comprehensiveenterprise performance evaluation expressions using the factor analysis. Throughdescriptive statistical analysis, correlation analysis and multiple linear regressionanalysis, we have examined the relationship between the background characteristics ofexecutives of listed state-owned enterprises and private enterprises in ZhejiangProvince and enterprise performance.Empirical research on the full sample by state-owned and private enterprises, wefound both consistent results: the proportion of female executives and corporateperformance is significantly negatively correlated, the age of executives, the educationof executives and the separation case of jobs between the stake president and general manager and enterprise performance are significantly positively correlated, theproportion of executive shareholdings and corporate performance is related but notsignificant. Although the empirical results of the whole sample are same, but thebackground characteristics of executives and corporate performance may have adifferent relationship between different performance levels of companies. Continuingto study, according to the performance level of good order, the state-owned enterprisesand private enterprises are evenly divided into three groups: better performance,general performance and poor performance. Each group are regressed analysis. Theresults show: the different level of performance between the same nature of propertyrights under the groups, the regression results were different for each group, and withthe full sample regression results are also different; and the same level of performancebetween the different nature of property rights under the groups, the regression resultsare different too. Because each performance level of the company has its owncharacteristics, maybe it is not appropriate for other companies to choice the samepolicy with the better performed company when selecting and appointing seniorexecutives. Finally, according to the regression results in each group, considering eachcompany’s own performance level, according to the characteristics of each type ofstate-owned enterprises and private enterprises, we propose specificrecommendations and point out the limitations of this paper.